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Mortgage Overpayment vs Savings

Compare estimated interest avoided on a repayment mortgage with savings interest over the same horizon. This is a scenario comparison, not a recommendation.

Enter your figures

Outstanding mortgage (£)

Mortgage annual rate (%)

Remaining mortgage term (years)

Monthly amount to compare (£)

Savings annual interest rate (%)

Estimated tax on savings interest (%)

Comparison horizon (years)

Enter your figures and select Calculate.

Assumptions and limitations

Assumes constant rates, monthly compounding and fixed payments. Savings tax is a simplified user-supplied estimate, not a tax calculation. After early mortgage payoff, unused mortgage payments are assumed to be saved at the stated savings rate. Excludes early-repayment charges, mortgage overpayment limits, savings allowances and changes in rates. Check your lender's terms and preserve emergency cash.

Build an emergency fund before locking away cash.

All figures are calculated in your browser. No financial figures are sent to our servers by this calculator. Results are general information, not personalised financial advice.

Should I overpay my mortgage or put the money into savings?

Compare the interest you could avoid by reducing your mortgage balance with the return you could earn on savings, using rates and payments you enter. A higher savings rate does not automatically make saving better: tax, rate changes, access to cash, mortgage charges and your lender’s terms can change the result.

Mortgage overpayment versus savings: what to check

Start with an emergency fund and priority bills. Check the mortgage rate and whether an early repayment charge applies, then compare savings rates after any relevant tax. This tool uses a simplified tax estimate rather than calculating your personal tax position.

If you want to see the effect of an extra mortgage payment on the repayment term and interest alone, use our Mortgage Overpayment Calculator. For money you might need at short notice, see where to keep your savings. Neither tool predicts future rates or provides personalised financial advice.